A couple of weeks ago I went to CompUSA and bought the Motorola 505 for 54 bucks for the same reasons you specify. It works as an FM transmitter as well as a bluetooth music streaming and hands-free calling device. The unit pairs easily with your phone and lasts for days on one charge via included car charger. The 505 scans for FM stations for you and announces them. When a particular station becomes unusable, you tap on the FM button on the unit and it will call out a different station for you to try. Don't like the reception? Just tap again until you find a good one. Works great on my DX2 and I have no music streaming problems. I use it with Winamp, PowerAmp, TuneIn Radio, Audio Galaxy and other apps. Call quality is excellent over your speakers, much better than bluetooth headsets. Hope this helps.Thank you for your reply. 1. I'm obviously not that up to what device I need to buy to connect to the lighter socket. I want to try to play through the car speakers and not bring portable speakers to the car. If you have a suggestion as to what I should get, I'd appreciate it. BTY, if you're on the FM dial, what happens if you're driving away from the local station; how do you get to a different station? 2. How do you like the Bionic? I was waiting for months for it to come out and finally last May bought the X2 which I like. I'm now about to get my wife a Droid and thought about the Bionic (give her my X2 for the Bionic). Your thoughts?
I also use the Satechi Soundfly, though when it comes to FM transmitters, I'd say it is definitely not pricey. Some go up to $150. I prefer these because they aren't wireless and don't need to be charged since it uses the cigarette lighter in the car.
Amazon.com: Soundfly SD WMA/MP3 Player Car Fm Transmitter for SD Card, USB Stick, Mp3 Players (iPod, Zune): Electronics